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ShellyC1 (Texas)
Posts: 2
Posted:
I am on the board of an HOA in Arlington, TX. We have 2 lots which are significantly deliqnuent in their dues and we want to file a lien. Our By Laws allow it but we are wondering if there is a recommended form and does notice of the filing have to be sent first?
PeterD3 (Florida)
Posts: 708
Posted:
Lien forms variy from state to state. In addition, there are specific requirements which must be followed for filing liens. To avoid any unnecessary, costly litigation, resulting from errors in preparing and filing the lien.
The HOA should retain or utilize their attorney to file liens.
Also keep in mind that attorney fees can be collected in addition to the lien amount (in most states), so the HOA will not pay any attorney fees out of pocket once the lien has been paid.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
You may want to send a notification that a lien will be filed due to non-payment of dues by certified letter. That way you know they got the notification. Plus the actual lien may be sent this way as well. Keep in mind that the ACTUAL address the owner lives can be different than the HOME address in the HOA. If they are using their property as rental this most likely is the case. This doesn't mean you have to send or file the lien under their other address other than the HOA address. It may not hurt to attempt a notice letter sent to that address but all other legal dealing should ONLY be with the HOA address.
Some states filing liens are free or at little cost. They also don't require a lawyer to file. The notification of a lien may run in the local newspaper as a "Public Notice" to the owner IF they can't be located. If you do choose to hire a lawyer, then those fees can be part of that lien. The other charges can include late fees and approved interest. (Usually around 6% or less).

Keep in mind a lien doesn't mean the owner can't continue to rent out their property. They just can't sell it without paying the money owed. However, IF the property is being foreclosed on by the bank, then that will complicate matters some. Just make sure there is a lien on the property regardless.

Filing a lawsuit is less successful than a lien. It's a costier process and the owner can pretty much skip town without ever paying a dime. ALWAYS pursue the lien process.

Former HOA President
LynetteB (Texas)
Posts: 141
Posted:
Shelly,
I recommend writing and adopting an Assessment Policy which spells out the steps to be taken. (when the dues are due, when they become delinquent, amount of interest or fine for delinquency, what amount or amount of time before a lien will be filed, that all costs to collect will be charged to their account and so on). Read Property Code Chapter 209.006 for the info that should be included in notification.
As far as a form, I have found a few on google, but we use one that our developer had. I can email you a template of ours.
We file our own for $16.00 at the county clerk.
Lynette
(Granbury)
ShellyC1 (Texas)
Posts: 2
Posted:
Thanks so much to everyone. I think we are going to have an attorney handle the first one and then we will know the appropriate protocol going forward.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Have an attorney handle all of your liens. You cannot afford a legal mistake in dues collection or you'll have a squatter for an eternity.

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